FYI - Chrysler, Fiat Form Global Alliance

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link - http://www.npr.org/templates/story/story.php?storyId=99575001


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Chrysler, Fiat Form Global Alliance
NPR.org, January 20, 2009 · The struggling U.S. automaker Chrysler has announced plans to form a global alliance with the Italian automaker Fiat.

As the legendary Yogi Berra might put it, the deal brings a sense of deja vu all over again.

Twenty years ago, a merger between Chrysler and Fiat was scuttled only hours before it was set to be announced, and eventually, that led to the brief, unhappy marriage between Chrysler and Germany's Daimler.

The U.S. automaker has been struggling to survive since it was dumped out on its own, again, in 2007, and even though it got $4 billion in federal loans last month, many observers feared Chrysler wouldn't survive without a partner.

The new deal with Fiat isn't a full-fledged merger but rather a global alliance, not unlike the one between Japan's Nissan and the French automaker Renault.

Chrysler would get help building new products and powertrains, while Fiat would get access to the U.S. market for a return by its Alfa-Romeo brand.

The only stumbling block: The proposed alliance will have to pass muster with federal regulators overseeing the automotive bailout.

Paul Eisenstein reports from Detroit for NPR Newscast.